The Covid-19 pandemic has brought many fold challenges to global economy which affected the daily lives of people across the world. The pandemic required a push from our governments to undo the damages and to initiate structural reforms required to strengthen the economies.
The government of the United Arab Emirates has recently initiated long awaited legal reforms to strengthen the economic structure of the nation. The country has made it easier for expatriates to not just setup their business in the UAE but also to maintain full control over it. The UAE now allows for 100% ownership of expatriates in various sectors except the ones of strategic importance to the nation. This has opened a wide range of activities for businesses across the world to own and operate their business in the UAE which earlier required involvement of a UAE national. This step will provide a major boost to foreign investments in the nation having one of the best infrastructures in the world.
The recent changes to the UAE’s Bankruptcy Laws have been made to save businesses from going bankrupt because of ‘Emergency Financial Crisis’. A debtor is no longer required to mandatorily file for bankruptcy in an event of not paying its debts for 30 days. Provisions have been made to promote mutual agreements between debtors and creditors to delay the payment of debts up to 12 months. The amendments have also been made to prevent the courts from entertaining bankruptcy petitions from creditors. Courts are barred in the phase of Emergency Financial Crisis to seal the business premises of debtors. Collectively these changes will not just prevent unfair closure but will also keep in market the businesses which are failing due to the Covid-19 pandemic.
Small and Medium Enterprises (SMEs) are the backbone of any economy for the reason that it provides employment to a large chunk of population. The UAE government has made it easy for such businesses to borrow money by diversifying the financial asset that can be used to take credit. SMEs can now use tangible assets such as tools and raw materials and intangible assets such as receivables and collateral against loans. This measure will expand the businesses of banks and will at the same hand provide financial support to SMEs in this crisis.
To achieve the goal of gender equality the cabinet of the UAE has taken a positive step by providing equal wage for equal work of equal value for both men and women. This has been done to promote economic and social equality between both the genders. These changes will boost female participation in the labor force of the UAE and will strengthen its economy.
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